Tag Archives: BRU

G7 urges China to abstain from threats, use of force

MUENSTER, Germany, Nov 4 (Reuters) – The Group of Seven on Friday urged China to abstain from “threats, coercion, intimidation, or the use of force,” while expressing their aim for cooperation where possible to tackle global challenges including security, global health and climate.

The mildly-worded communique, wrapping up two days of meetings by the foreign ministers of the world’s seven wealthiest democracies, also reiterated the importance of peace and stability across the Taiwan Straits.

The G7 increasingly agrees on the need for a coordinated response to Chinese President Xi Jinping’s ambitions following a congress of the ruling Communist party, a senior U.S. State Department official said earlier, but the communique did not make a reference to a common goal.

The gathering coincided with a one-day visit by German Chancellor Olaf Scholz to China, which fuelled concern that Germany would continue to prioritize economic relations with its largest trading partner over security and strategic considerations.

This could risk divisions among Western allies that have sought to adopt a tougher stance towards China in recent years.

“We remind China of the need… to abstain from threats, coercion, intimidation, or the use of force,” the G7 communique said. “We strongly oppose any unilateral attempts to change the status quo by force or coercion.”

The G7 said it remained “seriously concerned about the situation in and around the East and South China Seas” after China earlier this year staged war games near Taiwan.

China claims the self-governed island as its own territory and has never renounced the use of force to bring the island under its control.

Moreover the G7 said they would continue to raise concerns with China on its reported human rights violations and abuses, including in Xinjiang and Tibet, and on the “continued erosion of Hong Kong’s rights, freedoms and autonomy”.

The U.S. State Department official told reporters there was had been an “increasing convergence of the views on what China’s ultimate strategy, both domestically but also globally, is” over the last 1-1/2 years.

“Coming out of the party congress, I think there’s an increasing recognition of ultimately what President Xi’s ambitions are and the need for a coordinated response to that,” he said, speaking on condition of anonymity.

“That’s something that I think will be a focus of this group as we head into Japan’s presidency next year,” he noted, referring to Japan taking over the G7’s rotating presidency from Germany at the start of next year.

Sino-Japanese relations have long been plagued by a dispute over a group of tiny uninhabited East China Sea islets, a legacy of Japan’s World War Two aggression and regional rivalry.

On Friday Japan’s Sankei newspaper reported that the Japanese and Chinese governments had started planning a meeting between Xi and Japanese Prime Minister Fumio Kishida for mid-November.

European Union foreign policy chief Josep Borrell cautioned earlier in the day that China should not be put in the same category as Russia, which invaded Ukraine in February.

“It is clear that China is… becoming much more assertive, much more on a self-reliant course,” Borrell told reporters.

“But for the time being, many member states have a strong economic relationship with China, and I don’t think we can put China and Russia on the same level.”

The G7 said in their statement that they aimed for “constructive cooperation with China, where possible and in our interest” on global issues such as health and climate change.

Reporting by Humeyra Pamuk, Sarah Marsh and Sabine Siebold; additional reporting by Sarah Marsh; editing by Philippa Fletcher and Jonathan Oatis

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EU slaps human rights sanctions on Iran, warns of more over Ukraine

  • Ukraine says Iran supplying drones for Russia’s war
  • Crackdown on protests brings EU punitive action
  • EU foreign ministers meeting in Luxembourg

Oct 17 (Reuters) – Several European Union foreign ministers on Monday called for sanctions against Iran over the transfer of Iranian drones to Russia, as the bloc agreed a separate set of asset freezes and travel bans over Tehran’s crackdown on protests.

Kyiv has reported a spate of Russian attacks with Iranian-made Shahed-136 drones in recent weeks, saying on Monday that Tehran was responsible for the “murders of Ukrainians”.

Iran denies supplying drones to Russia since its invasion of Ukraine. The Kremlin has not commented.

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“I think it (new sanctions) should be worked out immediately,” Estonian Foreign Minister Urmas Reinsalu told Reuters as the bloc’s foreign ministers were due to discuss the transfer of Iranian drones to Russia.

Reinsalu said Kyiv’s reports on the Iranian origin of the drones should be taken seriously, with sanctions acting as a deterrent to show “this has consequences.”

France and Germany, both parties to the 2015 nuclear deal with Iran, have also made it clear they believed new sanctions in connection to the drones were necessary and that the drone transfers should be seen as a violation of a U.N. Security Council resolution. read more

‘THIS IS AN ATROCITY’

The EU could move towards imposing new sanctions against Iran over the matter, according to two diplomats involved in preparing talks among the ministers, though no detailed decisions were expected on Monday. read more

“Iranian drones are used apparently to attack in the middle of Kyiv, this is an atrocity,” Denmark’s Foreign Minister Jeppe Kofod said as he arrived at the meeting of EU foreign ministers in Luxembourg, urging a response. read more

EU foreign policy chief Josep Borrell said the bloc would look for hard evidence about Iran’s role.

Meanwhile, the EU foreign ministers added 11 Iranians and four institutions, including Iran’s morality police chief, to a travel ban and asset freeze list for their role in the crackdown on protests after the death in custody of 22-year-old Mahsa Amini.

“Unanimous decision today to take action against those in #Iran responsible for the death of #MahsaAmini and violent repression of peaceful protests,” Borrell tweeted.

Tehran says it is keeping order against foreign-instigated troublemakers.

Additional EU sanctions on Iran will not be limited to blacklisting some individuals should Tehran’s involvement in Russia’s war on Ukraine be proven, Luxembourg’s Foreign Minister Jean Asselborn said.

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Reporting by Sabine Siebold, Marine Strauss, Gabriela Baczynska, Writing by Ingrid Melander, Editing by William Maclean and Andrew Cawthorne

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EU set to train 15,000 Ukrainian troops, provide more arms funding for Kyiv

BRUSSELS, Oct 17 (Reuters) – European Union foreign ministers are expected to agree on a mission to train 15,000 Ukrainian troops from next month and an extra 500 million euros worth of funding for arms deliveries to Kyiv when they meet in Luxembourg on Monday.

The ministers are also likely to slap additional sanctions on Iran over Tehran’s latest crackdown on protesters, and take a fresh look at the bloc’s relations with China, paving the way for a potentially tougher stance on Beijing.

Two senior EU officials said the military training would start in mid-November and would take place on EU territory at one hub in Poland and another in Germany.

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Several EU countries have already been instructing Ukrainian troops on how to use specific weapons and this will continue.

The European Union has supported Kyiv since the start of the war with financial and, in a first for the bloc, military aid.

The foreign ministers will agree to add a further 500 million euros ($486 million) to a fund that reimburses EU member states for arms delivered to Ukraine, bringing the total amount earmarked for arms for Kyiv to over 3 billion euros.

Unlike earlier tranches, the additional money will also cover costs for repair and maintenance of weapons already delivered to Ukraine.

SANCTIONS ON IRAN

The EU ministers are expected to impose travel bans and asset freezes on some 15 Iranians involved in the crackdown on demonstrators in Iran, who took to the streets after the death in police custody of 22-year-old Mahsa Amini.

EU foreign ministers will also discuss the transfer of Iranian drones to Russia, opening the way for potential further sanctions that could be agreed at a later date.

With regard to China, ministers will look into a “fine tuning” of the relations, officials said, noting that Beijing is a crucial trade partner for the EU and Europe depends on Chinese products and raw materials.

Diplomats say Brussels is concerned that Chinese President Xi Jinping is setting China on an increasingly authoritarian path, and uneasy about Xi’s support of Russian President Vladimir Putin.

“The objective is not to change radically this (EU) policy but, obviously, things have happened and ministers will be talking about that,” one EU official said, adding that there may be a need to change policy in the future.

He said the bloc’s leaders would discuss China policy at a summit on Thursday and Friday, and the EU would also monitor closely the Communist Party Congress that opened on Sunday.

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Reporting by Sabine Siebold, additional reporting by Charlotte Van Campenhout, editing by Alexandra Hudson

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Europe’s new club meets without Russia

  • 44 European gather in Prague for symbolic summit
  • Energy and security high on everyone’s minds
  • Truss’ participation gives hope for better EU-UK ties
  • Doubts about viability of wide European format
  • EU 27 to follow with their own summit, gas cap on the menu

PRAGUE, Oct 6 (Reuters) – The European Union and its neighbours from Britain to Turkey met on Thursday to discuss shared security and energy problems stemming from Moscow’s invasion of Ukraine in a rare and symbolic summit of 44 European countries – but not Russia.

The Prague gathering is the inaugural summit of the European Political Community (EPC), a format that is a brainchild of French President Emmanuel Macron and brings together the 27 European Union members with 17 other European countries.

Some of them are waiting to join the bloc while another, Britain, is the only one ever to leave it.

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“All those who are gathered here know: Russia’s attack on Ukraine is a brutal violation of the peace and security order that we had over the last decades in Europe,” said German Chancellor Olaf Scholz.

“We don’t accept that part of a neighbouring country is annexed.”

His comments were echoed by Belgium’s Prime Minister Alexander De Croo, as well as the top EU diplomat, Josep Borrell.

“This meeting is a way of looking for a new order without Russia. It doesn’t mean we want to exclude Russia forever, but this Russia, (President Vladimir) Putin’s Russia, does not have a seat,” said Borrell.

British Prime Minister Liz Truss, after meeting the summit’s host, Czech Prime Minister Petr Fiala, stressed their “strong agreement on the importance of likeminded European democracies presenting a united front against Putin’s brutality”.

Her decision to attend the summit left some hoping for a warmer tone between the EU and London after Brexit, where the two are still in disagreement over trade issues around Northern Ireland.

The gathering at the sprawling Prague Castle is seen by its advocates as a grand show of solidarity for a continent mired in multiple crises from the security fallout of Russia’s war in Ukraine to dire economic consequences including an acute energy crunch.

Macron said his priority was to build more electricity connections in Europe, and lower gas prices.

“We share a same space. Very often, the same history. And we are meant to write our future together,” he said. “I hope we will be able to get common projects.”

NO DECISIONS

Beyond lofty declarations, there were doubts about the forum’s concrete goals and actions.

Latvia’s Prime Minister Krisjanis Karins said no decisions were expected at the symbolic gathering the EU had pitched as only an “initial exchange” of thoughts.

“The primary goal is that we all come together because Russian war in Ukraine is affecting all of us in the security sense and also through our economies, through the rising energy costs. The only way to handle this is working together,” he said.

Some dismissed the EPC swiftly as just another talking shop, one that will be difficult to manage not just because of its size but also because of its diversity and the traditional rivalries between many of its members, from Armenia and Azerbaijan to Greece and Turkey.

The 27 EU countries will go on to meet on their own on Friday, with tensions playing out over Germany’s 200 billion euro ($197.50 billion) energy support package that many of its peers see as damaging competition on the bloc’s single market.

In their meeting, EU countries will look at their differences about how to cap gas prices to contain soaring energy costs that are harming the post-COVID economic recovery.

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Reporting by Sabine Siebold, Michel Rose, Robert Muller, Jan Lopatka, Michel Kahn, Jason Hovet, Andreas Rinke in Prague, Philip Blenkinsop in Brussels; Writing by John Chalmers and Gabriela Baczynska; Editing by Josie Kao, Frank Jack Daniel and Frances Kerry

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Apple forced to change charger in Europe as EU approves overhaul

  • EU Parliament approves single charger reform
  • Standard is USB-C, used in Android-based devices
  • Common charging port required for new phones from autumn 2024
  • Laptops will have to be compatible with single charger from 2026

BRUSSELS, Oct 4 (Reuters) – Apple (AAPL.O) will have to change the charger for its iPhones in the European Union from autumn 2024 to comply with new rules introducing a single charging port for most electronic devices.

The reform passed by an overwhelming majority in the European Parliament on Tuesday, the first of its kind anywhere in the world, potentially strengthens the EU’s role as a global standard-setter on telephone technology. The vote confirmed an earlier agreement among EU institutions. read more

The new rules will make USB-C connectors used by Android-based devices the standard across the 27-nation bloc, forcing Apple to change its charging port for iPhones and other devices.

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It will also apply to laptops from 2026, giving manufacturers longer to adapt, although many already use USB-C.

Apple is expected to be the most affected of the big providers of electronic devices to European customers, although analysts say the impact could be positive if it encourages shoppers to buy the U.S. company’s new gadgets instead of ones without USB-C.

Shares in European semiconductor manufacturers rose on Tuesday after the vote, including those of Apple suppliers STMicro and Infineon .

The deal also covers e-readers, ear buds and other technologies, meaning it may also have an impact on Samsung (005930.KS), Huawei [RIC:RIC:HWT.UL] and other device makers, analysts said.

Apple, Samsung and Huawei were not immediately available for comment.

Under the reform, mobile phones and other devices sold after autumn 2024 will have to be compatible with the single charger, said Alex Agius Saliba, the EU lawmaker who steered the reform through the EU assembly. Old chargers will not be outlawed, however, so that customers can continue to use older models.

The large size of the EU market means the new rules may lead to changes in other countries.

GRADUAL PHASE-OUT

Saliba told a news conference that outlawing old chargers would have had a disproportionate impact on consumers and the environment, but noted that the change is expected to lead to a gradual phase-out of older products.

In total 13 categories of electronic devices will have to adapt by autumn 2024.

The Parliament extended the original proposal from the EU’s executive Commission which covered only seven types of devices. Lawmakers also added laptops from 2026.

Apple has in the past warned that the proposal would hurt innovation and create a mountain of electronics waste.

The change had been discussed for years and was prompted by complaints from iPhone and Android users about having to switch to different chargers for their devices.

The European Commission has estimated that a single charger would save about 250 million euros ($247.3 million) for consumers.

Half the chargers sold with mobile phones in 2018 had a USB micro-B connector, while 29% had a USB-C connector and 21% a Lightning connector, which is used by Apple, a 2019 Commission study showed.

Apple is working on an iPhone with a USB-C charging port that could debut next year, Bloomberg reported in May.

The Commission has also been mandated by lawmakers to assess the possible regulation of wireless charging, but an EU official said no decision has been made yet, noting that the technology is not yet mature.

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Reporting by Francesco Guarascio; Editing by Andrew Heavens and Catherine Evans

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EU countries approve energy windfall levies, turn to gas price cap

  • EU approves energy windfall profit levies
  • Countries eye gas price caps as their next move
  • States split over how to contain sky-high prices

BRUSSELS, Sept 30 (Reuters) – European Union countries agreed on Friday to impose emergency levies on energy firms’ windfall profits, and began talks on their next move to tackle Europe’s energy crunch – possibly a bloc-wide gas price cap.

Ministers from the 27 EU member countries met in Brussels on Friday, where they approved measures proposed earlier this month to contain an energy price surge that is stoking record-high inflation and threatening a recession.

The package includes a levy on fossil fuel companies’ surplus profits made this year or next, another levy on excess revenues low-cost power producers make from soaring electricity costs, and a mandatory 5% cut in electricity use during peak price periods.

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With the deal done, countries began talks on Friday morning on the EU’s next move to contain the price crunch, which many countries want to be a broad gas price cap, though others – most notably Germany – remain opposed.

“All these temporary measures are very well, but in order to find the solution to help our citizens in this energy crisis, we need to cap the gas price,” Croatian economy minister Davor Filipovic said on his arrival at Friday’s meeting.

Fifteen countries, including France, Italy and Poland, this week asked Brussels to propose a price cap on all wholesale gas transactions to contain inflation.

The cap should be set at a level that is “high and flexible enough to allow Europe to attract the required resources”, Belgium, Greece, Poland and Italy said in a note explaining their proposal seen by Reuters on Thursday.

The countries disputed the Commission’s claim that a broad gas price cap would require “significant financial resources” to finance emergency gas purchases should market prices break the EU’s cap.

Belgian energy minister Tinne Van der Straeten said only 2 billion euros ($1.96 billion) would be required, as most European imports fall under long-term contracts or arrive by pipeline with no easy alternative buyers.

That would be a fraction of the 140 billion euros the EU expects its windfall profit levies on energy firms to raise.

But Germany, Austria, the Netherlands and others warn broad gas price caps could leave countries struggling to buy gas if they cannot compete with buyers in price-competitive global markets.

A diplomat from one EU country said the idea posed “risks to security of supply” as Europe heads into a winter with tight energy supplies after Russia slashed gas flows to Europe in retaliation for Western sanctions against Moscow for invading Ukraine.

The European Commission has also raised doubts and suggested the EU instead move ahead with narrower price caps, targeting Russian gas alone, or specifically gas used for power generation.

“We have to offer a price cap for all Russian gas,” EU energy policy chief Kadri Simson said.

Brussels suggested that idea earlier this month, but it hit resistance from central and eastern European countries worried Moscow would retaliate by cutting off the remaining gas it still sends to them.

By introducing EU-wide measures Brussels hopes to overlay governments’ uneven national approaches to the energy crunch, which have seen richer EU countries far outspend poorer ones in handing out cash to ailing companies and consumers struggling with bills.

Germany, Europe’s biggest economy, set out a 200 billion euro package on Thursday to tackle soaring energy costs, including a gas price brake.

Luxembourg energy minister Claude Turmes urged Brussels to change EU state aid rules to stop the “insane” spending race between countries.

“That’s the next frontier, to get more solidarity and to stop this infighting,” Turmes said.

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Reporting by Kate Abnett and Gabriela Baczynska; Additional reporting by Philip Blenkinsop, Bart Meijer and John Chalmers; Editing by Jan Harvey

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Russia says Nord Stream likely hit by state-backed ‘terrorism’

  • Kremlin says damage to pipelines looks like ‘terrorism’
  • EU official says leaks change nature of Ukraine conflict
  • European officials say Russian ships seen nearby -CNN

MOSCOW/BRUSSELS, Sept 29 (Reuters) – Russia said on Thursday that leaks spewing gas into the Baltic Sea from pipelines to Germany appeared to be the result of state-sponsored “terrorism”, as an EU official said the incident had fundamentally changed the nature of the conflict in Ukraine.

The European Union is investigating the cause of the leaks in the Gazprom-led (GAZP.MM) Nord Stream 1 and 2 pipelines and has said it suspects sabotage was behind the damage off the coasts of Denmark and Sweden.

Four days after the leaks were first spotted, it remains unclear who might be behind any attack on the pipelines that Russia and European partners spent billions of dollars building.

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“This looks like an act of terrorism, possibly on a state level,” Kremlin spokesman Dmitry Peskov said, adding: “It is very difficult to imagine that such an act of a terrorism could have happened without the involvement of a state of some kind”.

Russia also said the United States stood to benefit, in a war of words with the West over who was responsible. Moscow has previously said the leaks occurred in territory that is “fully under the control” of U.S. intelligence agencies.

Russia’s Foreign Ministry spokeswoman Maria Zakharova told a news briefing Washington would be able to boost its liquefied natural gas (LNG) sales if the pipelines were put out of use.

But U.S. news channel CNN, citing three sources, reported that European security officials had observed Russian navy support ships and submarines not far from the leaks.

Asked to comment on the CNN report, Peskov said there had been a much larger NATO presence in the area.

Zakharova called for an EU investigation to be “objective”, and said Washington would have to “explain itself” – a reference to President Joe Biden’s comment in February that, if Russia invaded Ukraine, “there will no longer be a Nord Stream 2”.

The White House has dismissed Russian allegations that it was responsible for the damage to Nord Stream and Biden’s comments were referring to efforts at the time to secure certification to bring Nord Stream 2 into commercial use.

Leaks from the Nord Stream 1 pipeline are likely to be stopped on Monday, the pipeline’s operator told Reuters.

But the spokesperson for Nord Stream AG said it was not possible to give any forecasts for the pipeline’s future operation until the damage had been assessed.

Russia had halted deliveries via Nord Stream 1, saying Western sanctions had hampered operations.

While neither pipeline was supplying gas to Europe when the leaks were first detected, both had gas in them.

European leaders and Moscow say they can not rule out sabotage. Map of Nord Stream pipelines and locations of reported leaks

‘ROBUST RESPONSE’

EU leaders will discuss the ramifications of the damage next week at a summit in Prague, an EU official said.

“The strategic infrastructure in the entire EU has to be protected,” the EU official in Brussels said.

“This changes fundamentally the nature of the conflict as we have seen it so far, just like the mobilisation … and the possible annexation,” the EU official said, referring to Russia’s mobilising of more troops for the war and expectations President Vladimir Putin will annex Ukrainian regions.

Russia’s war with Ukraine and the resulting energy standoff between Moscow and Europe, which has left the EU scrambling to find alternative gas supplies, are set to dominate the EU summit on Oct. 7.

The European Union on Wednesday warned of a “robust and united response” should there be more attacks and stressed the need to protect its energy infrastructure, but EU officials have avoided pointing a figure directly at possible perpetrators.

Next week, EU leaders will discuss an eighth sanctions package on Russia which European Commission chief Ursula von der Leyen has proposed, including tighter trade restrictions, more blacklistings and an oil price cap for third countries.

The EU official said he expected the 27-nation bloc to agree parts of the sanctions package before the summit, such as the blacklisting of additional individuals and some of the trade restrictions with regard to steel and technology.

Other topics such as the oil price cap or the sanctioning of banks may not be solved before the summit, he added.

EU states need unanimity to impose sanctions and Hungary’s prime minister Viktor Orban has been a vocal critic, saying sanctions have “backfired”, driving up energy prices and dealing a blow to European economies.

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Writing by Alexander Smith; Editing by Elaine Hardcastle and Edmund Blair

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Exclusive: NATO chief says Putin won’t win in Ukraine despite ‘reckless’ escalation

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NEW YORK, Sept 21 (Reuters) – President Vladimir Putin will not win the war in Ukraine despite his order to mobilize thousands of extra troops, the secretary general of NATO said on Wednesday, calling the Russian leader’s threat to use nuclear weapons “dangerous and reckless rhetoric.”

Jens Stoltenberg told Reuters in an interview that Russia’s first mobilization since World War Two would escalate the conflict and cost more lives, but the move was evidence that Putin had miscalculated since the Feb. 24 invasion of Ukraine.

In an address to Russians earlier, Putin announced he would call up 300,000 reservists to fight in Ukraine and backed a plan to annex parts of the country, hinting to the West he was prepared to use nuclear weapons to defend Russia. read more

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“If the territorial integrity of our country is threatened, we will use all available means to protect our people – this is not a bluff,” Putin said.

Russia possesses “lots of weapons to reply,” Putin added.

Stoltenberg, speaking to Reuters Editor in Chief Alessandra Galloni in New York, said the 30-nation Western defense alliance will stay calm and “not engage in that same kind of reckless and dangerous nuclear rhetoric as President Putin.”

“The speech of President Putin demonstrates that the war is not going according to President Putin’s plans. He has made a big miscalculation,” Stoltenberg said.

“More troops will escalate the conflict. That will mean more suffering, more loss of lives – Ukrainian lives, but also Russian lives,” Stoltenberg added.

Putin’s speech followed mounting casualties and battlefield setbacks for Russian forces, who have been driven from areas they had captured in northeast Ukraine in a Ukrainian counter-offensive this month and are bogged down in the south.

Stoltenberg said that although Russian troops were ill-equipped and lacked proper command and control, it was hard see the conflict ending in the short term as long as Russia does not accept that Ukraine is a sovereign, independent nation.

“The only way to end this war is to prove that President Putin will not win on the battlefield. When he realizes that, he has to sit down and negotiate a reasonable agreement with Ukraine,” said Stoltenberg, the former Norwegian prime minister.

Stoltenberg added that members of the alliance have provided unprecedented support to Ukraine and that the NATO allies now need to replenish their stocks of weapons and ammunition.

As NATO was prepared for a “long haul” in dealing with Putin, it was now in close dialogue with the defense industry to build back its stocks of materiel, Stoltenberg said.

Stoltenberg said China is among the security challenges that NATO needs to face up to but does not see China as an adversary. Stoltenberg also noted China’s “coercive behavior” in the South China Sea and against its neighbors as well as “the way they violate basic human rights.”

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Reporting by Humeyra Pamuk in New York and John Chalmers in Brussels; Writing by John Chalmers; Editing by Will Dunham

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In a first, EU moves to cut money for Hungary over damaging democracy

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  • EU executive proposes taking 7.5 billion euros from Hungary
  • Says remedies proposed by Hungary could work if well implemented
  • 27 EU countries have three months to decide, no veto
  • EU tests new democracy sanction for the first time

BRUSSELS, Sept 18 (Reuters) – The European Union executive recommended on Sunday suspending some 7.5 billion euros in funding for Hungary over corruption, the first such case in the 27-nation bloc under a new sanction meant to better protect the rule of law.

The EU introduced the new financial sanction two years ago precisely in response to what it says amounts to the undermining of democracy in Poland and Hungary, where Prime Minister Viktor Orban subdued courts, media, NGOs and academia, as well as restricting the rights of migrants, gays and women during more than a decade in power.

“It’s about breaches of the rule of law compromising the use and management of EU funds,” said EU Budget Commissioner Johannes Hahn. “We cannot conclude that the EU budget is sufficiently protected.”

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He highlighted systemic irregularities in Hungary’s public procurement laws, insufficient safeguards against conflicts of interest, weaknesses in effective prosecution and shortcomings in other anti-graft measures.

Hahn said the Commission was recommending the suspension of about a third of cohesion funds envisaged for Hungary from the bloc’s shared budget for 2021-27 worth a total of 1.1 trillion euros.

The 7.5 billion euros in question amounts to 5% of the country’s estimated 2022 GDP. EU countries now have up to three months to decide on the proposal.

Hahn said Hungary’s latest promise to address EU criticisms was a significant step in the right direction but must still be translated into new laws and practical actions before the bloc would be reassured.

CORRUPTION

Orban’s government proposed creating a new anti-graft agency in recent weeks as Budapest came under pressure to secure money for the ailing economy and forint, the worst-performing currency in the EU’s east.

Orban, who calls himself a “freedom fighter” against the world view of the liberal West, denies that Hungary – an ex-communist country of some 10 million people – is any more corrupt than others in the EU.

The Commission is already blocking some 6 billion euros in funds envisaged for Hungary in a separate COVID economic recovery stimulus over the same corruption concerns.

Reuters documented in 2018 how Orban channels EU development funds to his friends and family, a practice human rights organisations say has immensely enriched his inner circle and allowed the 59-year-old to entrench himself in power.

Hungary had irregularities in nearly 4% of EU funds spending in 2015-2019, according to the bloc’s anti-fraud body OLAF, by far the worst result among the 27 EU countries.

Orban has also rubbed many in the bloc the wrong way by cultivating continued close ties with President Vladimir Putin and threatening to deny EU unity needed to impose and preserve sanctions on Russia for waging war against Ukraine.

https://www.reuters.com/investigates/special-report/hungary-orban-balaton/

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Reporting by Gabriela Baczynska; editing by David Evans

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Google loses challenge against EU antitrust decision, other probes loom

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LUXEMBOURG, Sept 14 (Reuters) – Google suffered one of its biggest setbacks on Wednesday when a top European court upheld a ruling that it broke competition rules and fined it a record 4.1 billion euros, in a move that may encourage other regulators to ratchet up pressure on the U.S. giant.

The unit of U.S. tech giant Alphabet (GOOGL.O) had challenged an EU antitrust ruling, but the decision was broadly upheld by Europe’s General Court, with the fine trimmed modestly to 4.125 billion euros ($4.13 billion) from 4.34 billion euros.

Even with the reduction, it was still a record fine for an antitrust violation. The EU antitrust enforcer has fined the world’s most popular internet search engine a total of 8.25 billion euros in three investigations stretching back more than a decade.

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The judgment is set to boost landmark rules aimed at curbing the power of U.S. tech giants that will go into effect next year. read more

“The judgment strengthens the hand of the Commission. It confirms the Commission can use antitrust proceedings as a backstop threat to enforce rapid compliance with digital regulation also known as the DMA,” said Nicolas Petit, professor at European University Institute.

EU antitrust chief Margrethe Vestager did not mince her words.

“This, of course, is really good. Now, we have the second Google judgment and for us, it is really important as it backs our enforcement efforts,” she said.

This is the second court defeat for Google which lost its challenge to a 2.42 billion euro ($2.42 billion) fine last year, the first of a trio of cases.

“The General Court largely confirms the Commission’s decision that Google imposed unlawful restrictions on manufacturers of Android mobile devices and mobile network operators in order to consolidate the dominant position of its search engine,” the court said.

“In order better to reflect the gravity and duration of the infringement, the General Court considers it appropriate however to impose a fine of 4.125 billion euros on Google, its reasoning differing in certain respects from that of the Commission,” judges said.

Google, which can appeal on matters of law to the EU Court of Justice, Europe’s highest, voiced its disappointment.

“We are disappointed that the Court did not annul the decision in full. Android has created more choice for everyone, not less, and supports thousands of successful businesses in Europe and around the world,” a spokesperson said.

ANTITRUST BOOST

The ruling is a boost for Vestager after the General Court overturned her decisions against Intel (INTC.O) and Qualcomm (QCOM.O) earlier this year.

Vestager has made her crackdown against Big Tech a hallmark of her job, a move which has encouraged regulators in the United States and elsewhere to follow suit.

She is currently investigating Google’s digital advertising business, its Jedi Blue ad deal with Meta (META.O), Apple’s (AAPL.O) App Store rules, Meta’s marketplace and data use and Amazon’s (AMZN.O) online selling and market practices.

The Court agreed with the Commission’s assessment that iPhone maker Apple (AAPL.O) was not in the same market and therefore could not be a competitive constraint against Android.

The court backing could reinforce the EU antitrust watchdog in its investigations into Apple’s business practices in the music streaming market, which the regulator says Apple dominates.

FairSearch, whose 2013 complaint triggered the EU case, said the judgment may lead to more competition in the smartphone market.

“This shows the European Commission got it right. Google can no longer impose its will on phone makers. Now they may open their devices to competition in search and other services, allowing consumers to benefit from increased choice,” its lawyer Thomas Vinje said.

The Commission in its 2018 decision said Google used Android to cement its dominance in general internet search via payments to large manufacturers and mobile network operators and restrictions.

Google said it acted like countless other businesses and that such payments and agreements help keep Android a free operating system, criticising the EU decision as out of step with the economic reality of mobile software platforms.

The case is T-604/18 Google vs European Commission.

($1 = 1.0002 euros)

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Reporting by Foo Yun Chee
Editing by David Evans and Bernadette Baum

Our Standards: The Thomson Reuters Trust Principles.

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